By Kate Yuan

(JW Insights) Jul 31 -- Sanan Optoelectronics (三安光电), China’s leading LED chip manufacturer, announced on July 26 that the China's National Integrated Circuit Industry Investment Fund (Big Fund) has reduced its stake by 0.81% between July 18 and 26, with shareholding ratio officially dropping below 5%.

This is the third time the Big Fund reduced Sanan stake since 2020. It has sold RMB5.5 billion ($769.9 million) in holdings over the past three years.

This reduction by the Big Fund is in execution of its previously disclosed plan. In April, it announced its intention to reduce holdings by no more than 1% in Sanan. Since July 2020, the Big Fund has carried out two rounds of cash-out in Sanan Optoelectronics, reaching a total of RMB4.859 billion ($680.17 million).

Founded in 2000, Xiamen-based Sanan Optoelectronics focuses on manufacturing LEDs, SiC, optical communications, RF, filters, GaN products, as well as epitaxial wafers and chips for compound semiconductors. It went listed on the Shanghai Stock Exchange in 2008.

Since 2019, the Big Fund has entered the payback period and trimmed holdings in various companies. Since March of this year, about ten listed companies in the semiconductor industry chain have announced the Big Fund's intention to reduce shareholdings in them, including Naura, Jingjia Micro, SMEI, and BDStar Navigation.

The Big Fund still holds shares in many important semiconductor companies. Sanan said on July 27 that there are 26 listed companies in which the Big Fund holds more than 5%, including SMIC, Huahong Semiconductor, SMIT Group, Silan Microelectronics, and AMEC. Currently, NSIG is the company in which the Big Fund holds the highest share, with a stake of over 20%.